Out on streets: Sizing sector protests ‘excessive’ taxation

Protesters block road against imposition of Section 40-B of Sales Tax Act

FAISALABAD: Dozens of owners of sizing industry units staged a protest demonstration on Monday against the imposition of a new tax. The demonstrators gathered in front of the DCO Complex at University Road and blocked it for traffic by burning tyres.  Traffic remained suspended for hours,causing problems to the commuters. Talking to reporters, Shakeel Ansari, the Pakistan Sizing Association chairman, said that the government had “arbitrarily and illogically” imposed Section 40-B of Sales Tax Act on the sizing sector. “In addition, the excise staff is also harassing us on various pretexts,” he said.

Ansari said that the sizing sector was a cottage industry which provided services at a very low profit margin. “We are not in a position to pay additional sales tax,” he said.

“The government has already imposed 17 percent sales tax on starch used by sizing units. It has decreased our profits. In such a situation, the imposition of section 40-B of Sales Tax Act on us has pushed the industry to the verge of collapse,” he said.

He said that they had held several meetings with the Federal Board of Revenue on the issue, but no action had been taken.  He said that the sector was facing a shortage of gas. “Under such circumstances, we have been forced to take to the streets to protect our rights,” he said. He said that the government should take note of the situation. “The imposition of 40-B of Sales Tax Act and withholding tax on bank transactions should be withdrawn.”

Published in The Express Tribune, September 22^nd,   2015.